Study proves EV Chargers have a positive impact on local communities and economies

Public EV charging stations (EVCS) provide more than just reliable infrastructure for electric vehicles; they can also have a significant positive impact on local communities and economies. As EV drivers wait for their cars to charge, they often have time to shop, eat, or explore nearby businesses, increasing local foot traffic and boosting revenue. Charging facilities can make businesses more appealing, giving them a competitive advantage and a chance to attract new customers. Thus, EVCS offers business owners the opportunity to diversify income streams and strengthen community vibrancy. Recognizing this impact is crucial for policymakers, EVCS providers, and business owners to maximize the benefits of EV charging infrastructure for sustainable, thriving communities.

While much research has focused on the environmental benefits of EVCS, there’s been a lack of studies on their economic impact on local businesses. However, a recent study published in Nature Communications shows that new EVCS installations consistently lead to higher customer visits and spending at nearby points of interest (POIs). For example, in 2019, adding one EV charging port was linked to a 0.21% increase in customer visits and a 0.25% boost in spending.

Considering that an EVCS typically includes several ports—averaging 5.4 in 2019 and around 5.0 from 2021 to 2023—the economic impact becomes even more substantial. Each additional station in 2019 led to a 1.4% rise in spending, and from 2021 to 2023, spending increased by 0.8% per added station. Although these percentages may seem small, they are impactful in the context of lower EV adoption (2.61% for Battery Electric Vehicles and 1.15% for Plug-in Hybrids in California by the end of 2022) and relatively low daily EVCS use in the U.S.

These effects are also significant in underserved communities. In 2019, an extra port increased visits by 0.17% and spending by 0.29%. Between 2021 and 2023, these increases were smaller but still notable, with customer visits rising by 0.08% and spending by 0.09%.

The cumulative economic impact of EVCS is meaningful. In 2019, each EVCS generated about $22,813 in added spending, covering about 8.2% of the installation cost for a 50kW DC fast charger. From 2021 to 2023, cumulative spending gains per EVCS were around $3,412 per year, covering roughly 11.2% of a Level 2 charger’s installation cost. Across all EVCS in California during the study, this increase in customer spending totaled $6.7 million in 2019 and $19.5 million between 2021 and mid-2023.

Citation: Zheng, Y., Keith, D.R., Wang, S. et al. Effects of electric vehicle charging stations on the economic vitality of local businesses. Nat Commun 15, 7437 (2024).